TEE Int’l

TEE Int’l: to become another Myanmar proxy play, with its foray into Myanmar’s cement industry. TEE signed an MOU with Ayeyarwaddy Cement, a subsidiary of A1 Group of Companies, which is one of the leading and largest conglomerates in Myanmar. IE Singapore was the “matchmaker” to the deal. The companies intend to set up a JV co to develop and operate a Fully Integrated Cement Plant to manufacture Portland cement for sale in Myanmar. The 3000 ton capacity plant, with an estimated total project cost of btwn $250-30m (pending completion of technical studies by Jun ‘13), will be located in Ngayoke Kaung Village, Ngaputaw Township, Ayeyarwady division. It will be located nearby to an est 116m tons of limestone deposits. TEE will most likely be the lead for the EPC as well as M&E portions of the plant, while the A1 Group of Companies will undertake the building and civil works. The parties may carry out the project in phases over a min of 3 yrs, depending on mkt demand and other economic factors. The project will be funded by a combination of internal funds, bank borrowings and third party strategic investors. At present, TEE intends to take a controlling stake in the proposed JV. The stock is +3.3% at $0.315.